Senate Bill S5110

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5110
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 23, 2023
                                ___________
 
 Introduced by Sen. OBERACKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN  ACT to amend the real property tax law, in relation to extending the
   benefits of the STAR program to small businesses
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 3 of section 425 of the real property tax law,
 as added by section 1 of part B of chapter 389  of  the  laws  of  1997,
 paragraph  (a)  as amended by chapter 264 of the laws of 2000, paragraph
 (b-1) as amended by section 1 of part RR of chapter 59 of  the  laws  of
 2019,  paragraph  (d)  as amended by chapter 564 of the laws of 2015 and
 paragraph (e) as added by section 2 of part W of chapter 57 of the  laws
 of 2008, is amended and a new paragraph (f) is added to read as follows:
   3.   Eligibility  requirements.  (a)  Property  use.  To  qualify  for
 exemption pursuant to this section, the property must be a one,  two  or
 three  family  residence, a farm dwelling, SMALL BUSINESS or residential
 property held in condominium or cooperative form of  ownership.  If  the
 property is not an eligible type of property, but a portion of the prop-
 erty is partially used by the owner as a primary residence, that portion
 which  is  so  used  shall be entitled to the exemption provided by this
 section; provided that in  no  event  shall  the  exemption  exceed  the
 assessed value attributable to that portion.
   (b)  Primary  residence.  The property must serve as the primary resi-
 dence of one or more of the owners  thereof,  UNLESS  SUCH  PROPERTY  IS
 OWNED  BY  A SMALL BUSINESS AS DEFINED IN PARAGRAPH (F) OF THIS SUBDIVI-
 SION.
   (b-1) Income. For final assessment rolls to be used for  the  levy  of
 taxes  for the two thousand eleven-two thousand twelve through two thou-
 sand eighteen-two thousand nineteen school years,  the  parcel's  affil-
 iated  income  may  be no greater than five hundred thousand dollars, as
 determined by the commissioner pursuant to subdivision fourteen of  this
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09162-01-3
              

 S. 5110                             2
 
 section or section one hundred seventy-one-u of the tax law, in order to
 be  eligible  for the basic exemption authorized by this section. Begin-
 ning with the two thousand nineteen-two thousand twenty school year, for
 purposes  of  the  exemption  authorized  by  this section, the parcel's
 affiliated income may be no greater  than  two  hundred  fifty  thousand
 dollars, as so determined.  As used herein, the term "affiliated income"
 shall  mean  the  combined income of all of the owners of the parcel who
 resided primarily thereon on the applicable taxable status date, and  of
 any  owners' spouses residing primarily thereon. For exemptions on final
 assessment rolls to be used for the levy of taxes for the  two  thousand
 eleven-two  thousand  twelve  school  year,  affiliated  income shall be
 determined based upon the parties'  incomes  for  the  income  tax  year
 ending  in two thousand nine. In each subsequent school year, the appli-
 cable income tax year shall be advanced by one year. The  term  "income"
 as  used  herein  shall  have the same meaning as in subdivision four of
 this section.
   (c) Trusts. If legal title to the property is  held  by  one  or  more
 trustees,  the  beneficial  owner  or  owners shall be deemed to own the
 property for purposes of this subdivision.
   (d) Farm dwellings not owned by the resident. (i) If  legal  title  to
 the farm dwelling is held by an S-corporation or by a C-corporation, the
 exemption  shall  be granted if the property serves as the primary resi-
 dence of a shareholder of such corporation.
   (ii) If the legal title to the farm dwelling is held by a partnership,
 the exemption shall be granted if the property  serves  as  the  primary
 residence of one or more of the partners.
   (iii)  If  the  legal  title to the farm dwelling is held by a limited
 liability company, the exemption shall be granted if the property serves
 as the primary residence of one or more of the owners.
   (iv) Any information deemed necessary to establish shareholder,  part-
 ner  or owner status for eligibility purposes shall be considered confi-
 dential and exempt from the freedom of information law.
   (e) Dwellings owned by limited partnerships. (i) If legal title  to  a
 dwelling is held by a limited partnership, the exemption shall be grant-
 ed if the property serves as the primary residence of one or more of the
 partners, provided that the limited partnership which holds title to the
 property  does  not  engage in any commercial activity, that the limited
 partnership was lawfully created to hold title solely for  estate  plan-
 ning and asset protection purposes, and that the partner or partners who
 primarily  reside  thereon personally pay all of the real property taxes
 and other costs associated with the property's ownership.
   (ii) Any information deemed necessary to establish partner status  for
 eligibility  purposes  shall  be considered confidential and exempt from
 the freedom of information law.
   (F) FOR THE PURPOSES OF THIS SUBDIVISION, THE  TERM  "SMALL  BUSINESS"
 SHALL MEAN A BUSINESS WHICH EMPLOYS ONE HUNDRED PERSONS OR LESS.
   §  2.  This  act  shall take effect immediately and shall apply to all
 taxable years beginning on and after January 1, 2023.